What does 5x leverage mean?

A 5x leveraged position controls five dollars of exposure for each dollar of required margin. A 10% favorable price move can produce about a 50% return on margin before fees, and the same move against the position can produce a similar loss.

Is the liquidation price exact?

No. It is a simplified long-position estimate. Actual liquidation depends on broker or exchange rules, maintenance margin, funding, fees, portfolio offsets, and price gaps.

Does this apply to stocks, crypto, forex, and futures?

The arithmetic is generic, but each market has different contract sizes, margin rules, fees, and regulatory limits. Use broker disclosures for final requirements.

Leverage Calculator

Calculate required margin, borrowed exposure, leveraged profit or loss, return on margin, and an approximate liquidation price for a trading position.

Account equity ($)

Position size ($)

Leverage (x)

Entry price ($)

Exit price ($)

Maintenance margin (%)

Trading leverage and margin

English leverage calculator intent is mostly about margin trading: how much margin is required to control a position, how price movement changes profit or loss, and where a simplified liquidation threshold may sit.

Account equity and position size.
Leverage ratio and required margin.
Entry and exit price scenario for long-position P&L.
Maintenance margin and approximate liquidation price.

High-risk scenario

Leverage magnifies losses as well as gains. Brokers can change house margin requirements, liquidate positions, and apply different formulas from this simplified estimate.

Leverage formulas

R e q u i r e d ma r g in = \frac{P os i t i o n s i z e}{L e v er a g e}

Required margin is the capital needed to open the leveraged position under the selected ratio.

P & L = \frac{E x i t - E n t r y}{E n t r y} \cdot P os i t i o n s i z e

The current tool models a long-position price move before fees, funding, tax, slippage, and spreads.

R e t u r n o n ma r g in = \frac{P & L}{R e q u i r e d ma r g in} \cdot 100%

Return on margin shows how the scenario affects the capital committed to the trade.

L i q u i d a t i o n p r i ce \approx E n t r y \cdot (1 - (\frac{1}{L e v er a g e} - M ain t e nan ce ma r g in))

This is only a rough long-position approximation; actual broker and exchange formulas differ.

Frequently Asked Questions

Sources and References

Calculations are based on the listed reference sources. Links open in a new tab.

Updated: June 2, 2026

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